Following a report by "Sunday Business" today, rumours are spreading fast that networking giant Cisco have expressed an interesting in buying Finnish based mobile phone manufacturer Nokia.
Unwilling to reveal their source, "Sunday Business" said Cisco normally only acquire small, "niche market" technology players, as we have reported on in the past, but this time Cisco is reportedly expressing interest in other wireless companies.
The communications and networking market is changing rapidly as both fixed and mobile network technologies converge. Cisco allegedly needs a merger to acquire new technology which will help create intelligent wireless applications, which we presume is where Nokia comes in to the equation.
Worth around $120 billion, Cisco has been the industry leader in the networking market for years. Nokia is currently worth around $70 billion. With Cisco being priced at 25.5 times earnings and Nokia at 18.8 times, Cisco's proportionate earnings, and share price of course, would rise substantially if it acquired Nokia.
Neither firm was available for comment today.